Function of exchange rate and total domestic consumption

Assignment Help Business Economics

Reference no: EM13986985

Consider a small open economy in the short run where the government decreases the tax rate.

(a) Given a floating exchange rate sketch a graph of the impact of the tax decrease

(b) What direction (+/-/or no change) does the tax decrease impact: Y, Money Demand, r, e, and C

(d) What direction (+/-/or no change) does the tax decrease impact: Y, Money Demand, r, e, and C

(e) You own a hat company which sells both domestically and abroad. Therefore your total sales are a function of the exchange rate and total domestic consumption. Which regime would your prefer in the case?

Reference no: EM13986985

Questions Cloud

About a differentiated-product bertrand duopoly : Which of the following is NOT true about a differentiated-product Bertrand duopoly?

Exemplifies regulatory capture-capture theory of regulation : Which of the following best exemplifies regulatory capture, or the capture theory of regulation?

Describe the job title and targeted student population : Describe the job title and targeted student population (e.g., lead toddler teacher) and Discuss the essential functions of the position to include at least five tasks the applicant should be able to complete

Tariffs more effective in increasing output : Consider a small open economy in the short run where the government imposes trade tariffs on corn. Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? Under which regime does the money supply increase..

Function of exchange rate and total domestic consumption : Consider a small open economy in the short run where the government decreases the tax rate. You own a hat company which sells both domestically and abroad. Therefore your total sales are a function of the exchange rate and total domestic consumption...

How the comedy''s form explores this taboo or issue : Name one element of mise-en-scene in the comedy you watched (a prop, setting, character's costume, etc.) that demonstrates how the film explores the taboo or issue you discussed in 1a.

Compare and contrast the two sets of standards : Compare and contrast the two sets of standards. What features do they have in common? How do they differ?Discuss the relevance of these standards to the social/emotional and academic development of children. Why should these practices be in place

How the film explores the taboo or issue you discussed : Name one element of mise-en-scene in the comedy you watched (a prop, setting, character's costume, etc.) that demonstrates how the film explores the taboo or issue you discussed in 1a.

What is the impulse on the bullet imparted by the collision : What is the impulse J on the bullet imparted by the collision? If the bullet-sandbox collision lasted for a time interval , t=0.01 sec, what is the average force on the box?

User Account

All Pages